TSX Today: What to Watch for in Stocks on Friday, May 12

The main TSX index seems on track to end the third consecutive week in red territory.

Jitendra Parashar

Published May 12, 2023 8:42 am EDT

A continued selloff in the commodity market and U.S. debt ceiling concerns drove the Canadian stock market downward for the second consecutive session on Thursday. The S&P/TSX Composite Index slipped 82 points to settle at 20,418.

Despite moderate gains in some consumer and real estate stocks, big declines in other key sectors like healthcare, mining, and industrials pressured the market benchmark. Besides weakening commodity prices, the news that President Joe Biden’s debt limit negotiation meeting with key congressional leaders is now postponed to next week added pessimism, even as investors welcomed the release of slightly cooler U.S. wholesale inflation data and some positive corporate results.

Top TSX Composite movers and active stocks

Converge Technology Solutions (TSX:CTS) bounced back sharply, as investors continued to react to its quarterly results released on May 9. Interestingly, after losing 22.8% of its value in the previous session, CTS stock rallied 23.6% on Thursday to $3.35 per share. In the first quarter of 2023, the software firm’s adjusted earnings rose 20% YoY (year over year) to $0.12 per share.

On the one hand, Converge Technology’s chief executive officer Shaun Maine warned investors about challenging market conditions in 2023 in the latest earnings report. On the other hand, he showed confidence that the company is likely to gain market share organically and continue improving organic gross profit growth. Year to date, CTS’s share price is now down 27%.

Shares of CI Financial popped 23.2% yesterday to $15.40 per share after it announced its quarterly results and intentions to sell interests in its U.S. wealth management business.

Maple Leaf Foods and Dye & Durham were also among the top performers on the Toronto Stock Exchange, as they climbed more than 6% each.

On the flip side, Torex Gold Resources, Canopy Growth, Tilray Brands, Capstone Copper, and OceanaGold were the worst-performing TSX stocks in the last session, as they fell more than 9% each.

Based on the exchange’s volume data, Suncor Energy, Enbridge, CI Financial, and Converge Technology were the day’s most heavily traded stocks.

TSX today

Commodity prices across the board, especially precious metals, are bearish early Friday morning, as investors continue to monitor new developments related to the U.S. Federal debt limit talks. Given this commodity market weakness, TSX metal and mining stocks could continue to fall at the open today.

While no important economic releases are due, Canadian investors may want to keep a close eye on corporate results, as the main TSX index seems on track to end the third consecutive week in red territory. Companies like Air Canada, Africa Oil, Emera, Onex, Crescent Point Energy, H&R REIT, Canadian Apartment Properties REIT, and NorthWest Healthcare Properties REIT are expected to announce their quarterly results on May 12.